Wednesday, February 29, 2012

FAIRFIELD — Solano Economic Development Corp. President Sandy Person found some good news amid the economic data released Tuesday by her group and Solano County.

Then again, she also concluded that challenges and difficult work remain ahead.

“This document reflects the sobering realities of the Great Recession as well as some glimmers of hope . . . that the worst may be behind us,” Person wrote in the 2011 Index of Economic and Community Progress.

“Glimmers of hope.” “Black clouds for almost every silver lining.” Person’s introduction to the numbers in the report used some well-known images to depict the county’s economic state.

Person was at a conference Tuesday and unavailable for comment. She summed up her viewpoint in a Solano County press release and said the optimistic signs that have arisen mainly over the past year won out.

“Our economy is moving and it’s moving in the right direction again,” Person said.

Solano County and the Solano EDC have been releasing the annual index since 2007. Their stated goal is to have more “fact-based information” to guide local public and private efforts to expand the economy.

About 189,100 Solano County residents had jobs in 2010, compared to 188,100 in 2001, the report found. That at first glance would seem to be good news or, at least, hardly horrible news.

But the labor force expanded dramatically over this time at a rate far exceeding job growth. As a result, the number of unemployed residents rose from 9,100 in 2001 to 25,900 in 2010. To put that in perspective, 25,900 is close to the population of Suisun City, leaving the county with enough jobless to fill a city or medium size.

The report sliced up the labor figures in one more way and found some short-term good news. From December 2010 to December 2011, the number of unemployed residents fell by 3,000.

Solano County’s inflation-adjusted gross domestic product increased from $11.1 billion in 2000 to $13.9 billion in 2010, a 24.8 percent rise, the report found. But the big gains took place during the first five years of the decade, when the economy was still doing well. From 2005 to 2010, the gross domestic product fell from $14 billion to $13.9 billion.

Gross domestic product is the sum of consumer, government and business spending.

The report seeks to measure the standard of living in Solano County in inflation-adjusted dollars. It found that from 2001 to 2009, per-capita income rose from $36,082 to $38,670 and that median household income fell slightly from $65,251 to $65,079.

Sources of personal earning shifted, the report said. Social transfer payments, including military and public sector retirement incomes, increased almost proportionately to the reduction in workplace earnings, it said.

Foreclosure activity seems to be leveling off, but at a rate 300 percent higher than in 2000, the report found. A significant number of homeowners have homes with values less than the remaining mortgage balance, it said.

“While the decline in the rate of foreclosure activity is a positive sign, it may be a misleading indicator at this time due to the high degree of uncertainty and unknowns in the housing market,” the report said.

Supervisor John Vasquez in a press release gave his view on what the many numbers of the report add up to for local economic policies.

“The report reaffirms that our strategy to diversify Solano County’s industries has built some resiliency into our local economy,” Vasquez said. “It also shows we need to diversify even more.”

Solano County saw a gain of 1,200 jobs last year, but that is overshadowed by the longer-term effects of the recent recession -- overall employment down and the median home price greatly diminished.

Those are some conclusions of the "2011 Index of Economic and Community Progress" which delivers a multi-pronged look at how Solano County has fared in the recession.

Released Tuesday the county-produced document gives a little good news but also indicates just how much the current recession has hurt, Solano County Public Communications Officer Steve Pierce said.

In short, "we have more jobs but larger unemployment," Pierce said.

That seemingly paradoxical message stems from several trends as the economic hard times continue impacting employers, workers and homeowners, Pierce said.

But while the recent recession has undoubtedly hurt, Pierce said Solano's plight could be much worse.

"All things considered it's not as bad as it could be or as bad as we think it is," Pierce said.

Among those adding new jobs locally are government sectors and private ventures in education and health services, retail trade, leisure, hospitality, and professional and business services, according to the report.

In the Index's introduction, Solano Economic Development Corporation President Sandy Person said the county has made some positive strides over the last decade. Those, however, have been "overshadowed by the ravages of a deep recession fueled by the housing market collapse."

Those items on the negative side include a decline in the self-employed, lowered housing prices rolling back property tax revenues, and a still "unacceptably high" unemployment rate due to shrinkage of the region's employment base, Person said.

But, despite the "black cloud" over the silver lining, the private sector has steadily increased its share of the local job base and the actual number of county residents employed has risen slightly, she wrote.

"Our economy is moving, and it's moving in the right direction again," Person said.

A longer look at the county's economy paints an even brighter picture over the past decade with gains in local industry employment, gross domestic produce and per capita income.

A five-year view reflects the brunt of the recession gives a more somber picture -- local industry saw a loss of 9.700 jobs and the gross domestic product shrank 0.7 percent.

In addition, notices of defaults rose 432 percent and the median price of homes went down 60 percent.

"This Index affirms that families are hurting from the economy, but it also points to some bright spots that will help us recover from the recession," Solano County Mike Reagan said in a written statement.

The Index was launched in 2007 after a series of economic summits illustrated a need for more facts and figures to guide economic decisions in the public and private sector.

Solano County's economy has seen its ups and downs during the past decade, but a report by the Solano Economic Development Corporation and county officials released Tuesday says indications are that things are looking up.

The 2011 Index of Economic and Community Progress looks at key economic indicators such as employment, gross domestic product and per-capita income in the county for the past year, five years and 10 years.

What it found is three different stories, county officials said.

"When you take a decade-long view of the changes affecting the Solano County economy, several key indicators are showing positive signs or only modest declines, including a net gain of 2,900 jobs in local industry employment, a 24.8 percent increase in the gross domestic product, a 7.2 percent increase in the per-capita income and a 0.3 percent decline in median household income," a summary released by the county states.

"Shorten the perspective to understand the effects of the Great Recession and the numbers are a somber retraction of the gains in the first half of the decade. Local industry employment is down 9,700 jobs, the gross domestic product shrank 0.7 percent, notices of defaults are up 432 percent, and the median price for homes is down more than 60 percent.

"Narrow the view to the last year and the local jobs picture looks brighter for the private sector with a net gain of 1,200 jobs from December 2010 to December 2011. The public sector continued to
shrink."
Sandy Person, president of Solano EDC, writes in a summary of the report that she remains "optimistic" about the county's economic future.

"We have a proven track record of working together and crafting effective solutions to our major issues," she noted. "This 'collaborative capital' is a crucial component of our investment strategy that will continue the upward projection of our local economy."

Solano County Supervisor Mike Reagan agreed.

"We started the Index to give us a better perspective on what is happening in the economy and what we can do collectively to move the economy forward," Reagan said in a press release. "This index affirms that families are hurting from the economy, but it also points to some bright spots that will help us recover from the recession."

The Solano County Index of Economic and Community Progress project was launched in 2007 after a series of economic summits defined a need for more fact-based information to guide efforts by leaders in both the public and private sectors to expand the long-term viability of the Solano County economy. The 2011 edition of the index tracks many of the past indicators and adds the Sacramento region in many instances where comparisons are made to the Bay Area, state and nation. Unlike year's past, this web-based report was prepared directly by county staff and will be updated throughout the year as more current information becomes available.

Construction, manufacturing -- durable goods, government, agriculture and retail trade account for 7,400 job losses over the decade; however, the gains in the gross domestic product of Agriculture and Government offset the losses in the other three sectors.

"The index helps us to expand our current focus of getting people back to work and see where our economy has been successful in generating long-term growth," said Supervisor John Vasquez in the press release. "The report reaffirms that our strategy to diversify Solano County's industries has built some resiliency into our local economy. It also shows we need to diversify even more."

He said the loss of local redevelopment agencies will impact the capacity of the public sector to broker economic development opportunities. Vasquez said the cities and county will rely more on their partnership with the private sector to promote the advantages that Solano County offers.

"We need to make sure we keep doing what has been successful and provide ways for the other sectors to get moving forward," Vasquez said.

Tuesday, February 28, 2012

SOLANO COUNTY – The 2011 Index of Economic and Community Progress released today tells three stories of Solano County, depending on the length of your analytical lens.

When you take a decade-long view of the changes affecting the Solano County economy, several key indicators are showing positive signs or only modest declines, including a net gain of 2,900 jobs in local industry employment, a 24.8 percent increase in the gross domestic product, a 7.2 percent increase in the per capita income and a 0.3 percent decline in median household income.

Shorten the perspective to understand the effects of the Great Recession and the numbers are a somber retraction of the gains in the first half of the decade.Local industry employment is down 9,700 jobs, the gross domestic product shrank 0.7 percent, notices of defaults are up 432 percent, and the median price for homes is down more than 60 percent.

Narrow the view to the last year and the local jobs picture looks brighter for the private sector with a net gain of 1,200 jobs from December 2010 to December 2011.The public sector continued to shrink.

“We started the Index to give us a better perspective on what is happening in the economy and what we can do collectively to move the economy forward,” said Supervisor Mike Reagan.“This Index affirms that families are hurting from the economy, but it also points to some bright spots that will help us recover from the recession.”

The Solano County Index of Economic and Community Progress project was launched in 2007 after a series of economic summits defined a need for more fact-based information to guide efforts by leaders in both the public and private sectors to expand the long-term viability of the Solano County economy.The 2011 edition of the Index tracks many of the past indicators and adds the Sacramento region in many instances where comparisons are made to the Bay Area, state and nation. Unlike year’s past, this web-based report was prepared directly by County staff and will be updated throughout the year as more current information becomes available.

“In cooperation with the Solano EDC, the County is building the internal capacity to monitor, analyze and report the key indicators shaping our local economy,” Reagan said.

Construction, Manufacturing – Durable Goods, Government, Agriculture and Retail Trade account for 7,400 job losses over the decade; however, the gains in the gross domestic product of Agriculture and Government offset the losses in the other three sectors.

“The Index helps us to expand our current focus of getting people back to work and see where our economy has been successful in generating long-term growth,” said Supervisor John Vasquez. “The report reaffirms that our strategy to diversify Solano County’s industries has built some resiliency into our local economy.It also shows we need to diversify even more.”

He said the loss of local redevelopment agencies will impact the capacity of the public sector to broker economic development opportunities.Vasquez said the cities and county will rely more on their partnership with private sector to promote the advantages that Solano County offers.

“We need to make sure we keep doing what has been successful and provide ways for the other sectors to get moving forward,” Vasquez said.

Looking beyond the data in the Index, Solano EDC President Sandy Person points to examples of where Solano County is showing growth, such as the expansion among green energy-related companies, including:

Coda located in Benicia and expects to add 50-plus jobs assembling all-electric cars

Blu Homes opened at Vallejo-Mare Island to produce eco-friendly energy efficient prefab homes, with 90 new jobs to start and growing to 190 jobs.

“Our economy is moving, and it’s moving in the right direction again,” said Person.

The complete 2011 Index is available online at www.solanocounty.com/economicindex.Past indexes, cluster analysis on the life science and energy clusters, and an inventory of commercial and industrial parcels in Solano County are also available for download on the website.

Thursday, February 23, 2012

mercurynews.comRio Vista merchants and residents are expected to voice their concerns at a meeting about the economic impacts of plans to redirect Highway 12 between Interstate 80 and Interstate 5.

At the Wednesday meeting, members of the Rio Vista Business Alliance and Rio Vista Chamber of Commerce will hear more about the preliminary plans to widen Highway 12 and potentially expand the Rio Vista Bridge from two lanes to four. This major transportation project will affect Delta residents in Rio Vista, Isleton, Ryde and Walnut Grove, chamber president Phil Pezzaglia said. The Solano County Transportation Authority recently directed the Solano Economic Development Corp. to prepare an economic study of the entire Highway 12 corridor, which will be affected by the expansion.Economist Bob Fountain will speak with attendees about the project during the meeting at the Point Waterfront Restaurant."I would like to see whatever benefits the people and community and businesses of Rio Vista," Pezzaglia said. "I would like to see a lot of options and see the people of Rio Vista and the Delta involved in the decisions with the bridge."Rio Vista merchants are fearful that the expansion could hurt access to downtown and harm business, chamber Executive Director Mary Peinado said. In addition to a larger bridge such as the one in Antioch, other proposals include an underground tube that would take traffic under the river, a tunnel and a relocated bridge on the outskirts of Rio Vista. Rio Vista Vice Mayor Jack Krebs said that most of these alternatives are too costly and require shutting down river traffic during construction, which the Coast Guard won't allow."I believe that the majority of the sentiment in choosing a route was to keep it (the bridge) on Highway 12 going through town and have the bridge pretty much where it is now," Krebs said. "It is my belief that the final decision is going to be made by Caltrans, and I'm sure they will consider Rio Vista's recommendation."An architectural firm with experience in these kinds of projects is also involved in the process, Krebs said."In terms of economic impact, Rio Vista is the only large collection of people between Highway 80 and I-5, and the impact on us is going to probably be the greatest," he said.The analysis uses data to help with planning for the future of Highway 12 as an important regional transportation corridor, said Sandy Person, president of the Solano Economic Development Corp. She added that the study examines the current economic value of the corridor and potential future impacts on economic development, and bases its results on similar completed corridors throughout the state."This meeting is reaching out to the Rio Vista community to hear what their plans are and what their input is and how it is affecting their businesses," Person said.Pezzaglia said that the 52-year-old bridge, which is on Highway 12, has withstood continuous traffic with more people traveling for work and leisure in the area. He added that traffic can back up, however, on summer weekends when more recreational vehicles are traveling on it.The current bridge is the second. The original was built in 1918 and torn down after the existing bridge was built alongside it, Pezzaglia said."I think there will be many more meetings in regards to this issue, and I hope that everything works out for Rio Vista, and the people of Rio Vista will be taken into consideration during the decision-making," he said.